Published on 8/3/2020 in the Prospect News High Yield Daily.
New Issue: Avis Budget prices $350 million mirror tap of 5¾% notes due 2027 at 92 to yield 7.235%
By Paul A. Harris
Portland, Ore., Aug. 3 – Avis Budget Car Rental LLC and Avis Budget Finance Inc. priced a $350 million non-fungible add-on to their 5¾% senior notes due July 15, 2027 (B3/B-) at 92 to yield 7.235% in a Monday drive-by, according to market sources.
The issue price came at the rich end of the 91.5 to 92 price talk. Initial talk had the mirror notes pricing at 91 to 91.5.
Deutsche Bank Securities Inc. was the left lead bookrunner. Joint bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC, Barclays, Credit Agricole CIB and Scotia Capital (USA) Inc.
The Parsippany, N.J.-based vehicle rental company plans to use the proceeds to redeem its outstanding $100 million of 5½% senior notes due 2023, with the remainder to be used for general corporate purposes.
| Issuers: | Avis Budget Car Rental LLC and Avis Budget Finance Inc.
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| Amount: | $350 million
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| Maturity: | July 15, 2027
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| Security description: | Non-fungible add-on to 5¾% senior notes due July 15, 2027 (mirror notes)
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| Lead left bookrunner: | Deutsche Bank Securities Inc.
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| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC, Barclays, Credit Agricole CIB and Scotia Capital (USA) Inc.
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| Co-managers: | MUFG, RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., SMBC Nikko Securities America Inc., UniCredit Capital Markets LLC, BNP Paribas Securities Corp., Lloyds Securities Inc., Natixis Securities Americas LLC, NatWest Markets Securities Inc., SG CIB, HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc.
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| Coupon: | 5¾%
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| Price: | 92
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| Yield: | 7.235%
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| Spread: | 534 bps
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| First call: | July 15, 2022 at 102.875
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| Trade date: | Aug. 3
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| Settlement date: | Aug. 6
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 91.5 to 92
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| Marketing: | Drive-by
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